Gold Run Slowed by European Central Bank Comments

Jean-Claude Trichet, President, European Centr...

Image via Wikipedia, European Central Bank chief Jean-Claude Trichet

The European Central Bank weighed in on the current state of the global economy. ECB Governing Council member Yves Mersch said Once the genie of inflation is out of the bottle it might be too late. In order to avoid these effects, we will exert strong vigilance. Then ECB Chief Jean-Claude Trichet, backed up this position saying, increase of interest rates in the next meeting is possible, strong vigilance is warranted

They gave indication of a potential rate increase to curb inflation for the April meeting. Gold prices reacted to this downward pressure by retracting almost 1%. It also effected other precious metals with downward pressure. Still precious metals remain up for the year due to the ongoing conflict in Libya & other protests through out the region.

The long term trends still have gold & silver finishing with strong gains by the end of this year.  Read more: Bloomberg – Trichet Says ECB May Raise Rates, Show Strong Vigilance

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